US budget “almost fixed”

But it assumes that 4-5% growth will return, boosting taxes, in 2014-15.

The FT thinks this is unlikely, but sees the realisation as something that will help force through tax increases and spending cuts, as well as a focus on creating growth and jobs as the best way to grow tax income.

What the FT neglects to mention is that given the upward trend for energy costs, especially oil, these will need to be jobs with low energy intensity.